Fannie: Millennials Embracing Home Ownership in Droves

Monday, December 4, 2017

Builder magazine

New research from the University of Southern California and Fannie Mae confirms that Millennials are finally embracing home ownership.

The study, conducted by Patrick Simmons, director, strategic planning for the Economic & Strategic Research Group at Fannie Mae, and Dowell Myers, professor of Policy, Planning, and Demography at the Sol Price School of Public Policy at the University of Southern California, notes that traditional age-group analysis of the data suggests that Millennial home-ownership demand continues to slumber.

However, by examining the data from a cohort perspective, which disentangles current from past home-buying behaviors, the authors reveal a sharp awakening of Millennial home ownership.

Cohort analysis shows that the pace of young-adult home purchases accelerated substantially during the economic recovery and quickened further through 2016.

For every age transition above 22-23 – 24-25, the increases in cohort home-ownership rates between 2014-2016 were significantly greater than the gains registered from either 2008-2010 or 2010-2012.

Compared with the age-group approach, the cohort perspective suggests a more optimistic outlook for Millennial home ownership demand – and casts doubt on the notion that young adults have diminished preferences for buying homes.

More eNews

Friday, February 9, 2018

The number of workers aged 65 or older is projected to grow by an enormous 58% between 2016 and 2026, according to Bureau of Labor Force Statistics' projections. Older workers will account for the 51% majority of the overall 10.5 million increase in the...

Friday, February 9, 2018

The geographic mobility rate fell to a new all-time low in 2017, according to the Census Bureau. Only 11.0% of U.S. residents aged one or older as of March 2017 had moved in the previous 12 months. Not since 1960 have so few people moved (35 million)....

Tuesday, February 6, 2018

Canadian Heating Products (Montigo), a leading Canadian designer and builder of commercial and residential fireplace products, is pleased to announce the appointment of Sharon Murray to the role of vice president of Business Development....

Friday, February 2, 2018

Acadia Hearth, LLC has been formed to offer new lines of hearth and outdoor living products exclusively to the specialty hearth market. The company is part of Acadia Holdings, Cheyenne, Wyoming, a capital investment firm formed by a group of investors...

Friday, February 2, 2018

Americans are moving at historically low rates. In 2017, 34.9 million Americans changed residences, translating to a household mobility rate of 10.9%. That’s the lowest mobility, or what we’ll also refer to as a “moving rate,”...

Reader Comments

Steve Pulone,

General Manager/VP Operations of O’Malia’s Living

Carmel, IN

Reasons for Reading Hearth & Home: “I get a good idea of what’s happening with other retailers. It helps to know others are hitting the mark, or if they are trying new ways to get more dollars in the door.”